July 22, 2021

2021 – 07/19

The IRS has issued guidance that updates its Employee Plans Compliance Resolution System (EPCRS). The EPCRS permits retirement plan sponsors to correct certain plan failures so that they can continue to provide employees with retirement benefits on a tax-favored basis. The EPCRS updates include two new defined benefit plan overpayment correction methods. The two methods encourage employers to avoid recouping benefit overpayments made to participants and beneficiaries either by 1) not requiring a correction if the plan satisfies a specified funding level, or 2) limiting the amount to be recouped under certain circumstances. Read Revenue Procedure 2021-30: http://bit.ly/3y2SYPG